Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
British reform would ease rules for CUs
MANCHESTER, Eng. (8/5/08)--The Association of British Credit Unions Ltd. (ABCUL) says that government proposals to loosen rules and allow credit unions and other not-for-profit organizations to compete more evenly with private sector firms could lead to significant credit union growth. ABCUL CEO Mark Lyonette told Crains Manchester Business (Aug. 4) that he was delighted with the news that credit union rules would be modified, especially with a relaxation of the common bond. His comments were in response to consultation documents issued by HM Treasury on plans for a legislative reform order to amend the rules of credit unions and industrial and provident societies. It would replace "common bond" with a less restrict "field of membership" test; would open the door to lend money to businesses, partnerships and voluntary organizations; and scrap a 20,000-pound current lending and savings cap. Credit unions and others had expressed concern that the rules were out of date and restrictive on their development and competitiveness, the newspaper said. In the United Kingdom, just over 1% of the population has a credit union account. That compares with 40% in the U.S. and Canada and 25% in Australia. The consultation document notes that credit unions are perceived as a "poor persons bank" and suggests credit unions need to target more affluent members to remain viable. One credit union, Oldham CU, said the reform would be the first step toward greater cooperation between credit unions, especially on back office systems.


RSS





print
News Now LiveWire
Maine credit unions put Food Mobile on the road to relieving hunger in rural areas http://t.co/R0xpt6BAZE
17 hours ago
.@TheNCUA's Matz: PALS should be exempt from Military Lending Act proposal #NewsNow http://t.co/Vy9uNhOIEr
18 hours ago
#NewsNow Iowa loan growth 3 times national bank rate http://t.co/fUvudPLg5d
20 hours ago
.@ICBA tallies its Home Depot data breach costs: $90M, 7.5M cards http://t.co/iJgRDC2AKZ
21 hours ago
.@icul's Jury elected treasurer of @WOCCU exec committee http://t.co/HEF1UChN8f
22 hours ago